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Effectively negotiating intellectual property in Army contracting.
The partnership between the Army and industry is vital to the ecosystem that advances mission success now, and in the future. Industry provides solutions that the Army procures, develops and fields. The challenge that exists is industry wants to protect their investments and keep their intellectual property (IP), while the government wants to avoid paying for IP it doesn't need or licensing after they have already paid for, or invested in, the development of the property in the first place. Both parties have a vested interest in negotiating for the proper level of rights to technical data and IP.
The acquisition of technological solutions, and the services required to sustain those products, is one of the most important issues facing both the government and private industry. While industry needs to maintain its stake in its own investments, the government purchases products that may need customization, development and sustainment within a limited budget.
Therefore, negotiating IP, including data rights, in government contracting is critical to achieving the right balance of retaining what the government requires to develop and field capabilities within budget.
It is also important to understand the regulations in government contracting that primarily deal with IP. They are clauses found within the Federal Acquisition Regulations (FAR) and the Defense Federal Acquisition Regulations Supplement (DFARS). Specifically, the following:
o FAR 52.227-14 Rights in Data-General: This clause governs the rights to technical data and computer software developed or delivered under a government contract. It outlines the government's right to use, reproduce and disclose data, which can include modifications or improvements made by the government.
o DFARS 252.227-7013 Rights in Technical Data-Noncommercial Items: This clause applies to contracts involving technical data that is not commercially available. Under this clause, the government can acquire unlimited rights, government purpose rights or limited rights, depending on the funding source and type of data.
o DFARS 252.227-7014 Rights in Noncommercial Computer Software and Noncommercial Computer Software Documentation: For technology firms dealing with custom software development, this clause outlines the government's rights to use, modify and distribute software.
o FAR 52.227-11 Patent Rights-Ownership by the Contractor: This clause allows contractors to retain title to any invention developed during the contract, provided the government gets a...